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Feb 0910 02:21 p Mike Clements V <br />970-259-1906 <br />The dollar amounts of advance royalty provided for in Section 5.3 of <br />the Lease, shall be adjusted annually up or down on each anniversary <br />date of the Lease by the percentage of change in the United States <br />Department of Labor Consumer Price Index for All'Urban Consumers <br />( "CPI -U"), from the base month of .June, 2006 (1982 - 1984=108) to the <br />index number for the month next preceding the date of adj ustment <br />For Example: Assume this Mining Lease is dated March 15, 1994, and <br />the CPI -U for March 1994 is 145.9 and, for the month of February <br />1996, the CPI -U is 157.8. The dollar value of the Section 5.3 royalty <br />amount due March 14, 1996 would be stepped up to reflect this change <br />as follows: <br />pJ -U for March 1994 145.9 <br />108% x $7,500 = $8,100. <br />In the event that some year other than 1982 -84 is used as a base of 100 <br />in determining the CPIU for the purposes thereof, such index shall be <br />adjusted so as to be in correct relationship to 1982 -84. In the event that <br />the CPI -U is no longer published by any Federal agency, the index to <br />be used shall be that index independently published which, after <br />necessary adjustment, if any, provides the most reasonable substitute <br />for the CPI -U <br />16 <br />I <br />